Price Cap Carriers Accept $1.5 Billion in Annual CAF Phase II Support

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In April 2015, the FCC formally offered annual Connect America Fund (CAF) Phase II support to 10 price cap incumbent local exchange carriers with the condition that they use it to deploy voice and broadband-capable networks in their rural service areas. All 10 have now formally notified the FCC of their decisions to accept or deny annual CAF Phase II model-based support on a state-by-state basis:

  • AT&T accepted $427.7 million in annual CAF II support for 18 states.
  • CenturyLink accepted $505.7 million in annual CAF II support for 33 states.
  • Cincinnati Bell accepted $2.2 million in annual CAF II support for Kentucky and Ohio.
  • Consolidated Communications Holdings, Inc. accepted $13.9 million in annual CAF II support for six states.
  • FairPoint Communications Inc. accepted $37.4 million in annual CAF II support for 14 states.
  • Frontier Communications Corporation accepted $283 million in annual CAF II support for 28 states.
  • Micronesian Telecommunications Corporation accepted $2.6 million in annual CAF II support for the Northern Mariana Islands.
  • Hawaiian Telcom accepted $4.4 million in annual CAF II support for the state of Hawaii.
  • Verizon conditionally accepted $48.5 million in annual CAF II support for the states of California and Texas.
  • Windstream Communications Inc. accepted $174.8 million in annual CAF II support for 17 states.

In total, the 10 price cap carriers that were offered annual CAF Phase II funding accepted $1.5 billion. According to the FCC, the carriers will use the annual support to sustain and expand voice and broadband services to nearly 7.3 million Americans in 45 states nationwide and one U.S. territory.

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